The time may be ripe to join forces, officials at Glens Falls and Saratoga hospitals have decided.

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The two health institutions announced Tuesday that they are in formal talks about potential areas for collaboration, as the health industry becomes increasingly competitive and reforms push providers to deliver services more efficiently.

Chief executives of the organizations said Tuesday that talks have just begun, and that they don't know how tight or elaborate an affiliation between the hospitals may be, or if specific services would best lend themselves to joint ventures. The hospitals already work together in providing cancer care and covering medical specialties.

"This is the start of a conversation that may lead in many different directions," said Saratoga Hospital CEO Angelo Calbone. "We are being very intentional in not describing where we think it could lead."

Being transparent about the discussions, however, will enable the hospitals to determine their best option, he added.

In recent months, Albany- and Schenectady-based health systems and large doctors practices have opened satellite locations in Saratoga and Warren counties. Calbone acknowledged the increasing competition, but said it is not the reason for the current discussion.

"We do live in a competitive industry, but that is not driving this process truly at all," Calbone said. "This is taking a look at our future."

Finances also have been a challenge for the institutions, as they have been for all acute-care facilities, as reforms seek to reward providers for early interventions that keep patients out of hospitals and emergency rooms. Glens Falls Hospital sits at the southern end of the nine-county North Country region, where the health industry's stresses are compounded by the region's aging population, growing rates of chronic disease and shortage of health care workers, according to a state Health Department report released last month.

Glens Falls Hospital finished 2013 with a 1.5 percent loss on operations, Shugrue said. Financial losses in recent years have resulted in the loss of dozens of jobs in the 2,600-employee system. The hospital has shown a profit in each of the first four months of this year, Shugrue said.

Saratoga Hospital ended 2013 on budget, Calbone said.

"Health care is changing and hospitals are changing, and we want to have discussions to make sure that ... we have a local presence and that we have a strong community hospital," Shugrue said.